Jump to content

Income Tax as a Foreigner

Recommended Posts

So I am a foreigner that used to study in Australia, and I have paid taxes before when i was working. However now that I am back in my own Country do i have to pay taxes as a foreigner for any profit gain in my IG stock account? This has been bothering for awhile, cause if I do have to pay taxes it will take a significant amount from my profit. Hope someone has the answer to this. Thank you.

Link to comment
  • 5 weeks later...

Some of the info I've learned:

First you have to look at where your tax residency is. Usually your tax residency comes with a tax number, you'll give this to IG. IG will (I think) then share the details of your account with the tax service of your country of residence, if they ask about it.

Your country of residency (which is generally where you pay taxes, unless you're US national in which case you pay taxes there) now knows how much you've made (assuming they check, I can't say if they do) and how much you're supposed to pay taxes on it.

Which is debatable. Some countries tax their residents on their capital gains (Italy, Spain), some don't tax capital gains but will tax trading profits if you trade like a professional (usually based on the number of trades, amount of money traded, amount of time spent on it, amount of profit, how long you hold a trade... in most cases it's quite vague) (Singapore, HK, Belgium to a degree). 

So you need to look up where you're a tax resident, then you'll know if you owe taxes on your profits or not. I don't think IG will withhold the taxes for you. Note that some brokers do, and that some countries will tax your profits even if you're not a resident (Spain, Italy in some cases).

Note that if you lie about your residency this can get you into trouble, as will hiding it from your tax service. Before this was very common but in recent years most countries have signed up for information exchange systems that means most countries now know how much you made trading. If you're still using your old residency address you might be able to avoid this, but I wouldn't advise it.

In your specific case, it depends on where you owe taxes for the tax year you're talking about. Generally it's the 6 month rule, if you spend the majority of 2020 in your home country then I'm guessing you'll be tax resident there, in which case you wouldn't need to pay in Australia (assuming Australia doesn't tax non-residents).

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
    • Total Posts
    • Total Members
    • Most Online
      10/06/21 10:53

    Newest Member
    Joined 25/03/23 10:02
  • Posts

    • Charting the Markets: 24 March The FTSE 100, DAX 40 and Nasdaq 100 slide on renewed banking woes while EUR/USD, EUR/GBP and GBP/USD drop as the US dollar, gold appreciate due to flight-to-quality flows. Crude oil and copper tumble on recession fears.  Axel Rudolph FSTA | Senior Financial Analyst, London | Publication date: Friday 24 March 2023         This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.  
    • Market Breakdown | WTI Oil, EURUSD, GBPNZD, EURAUDHere are the updates & outlook for multiple instruments in my watchlist.1️⃣ WTI Oil daily time frame️The market is trading in a long term bearish trend .After the last sharp bearish movement, the market is steadily recovering.Ahead, I see a major horizontal supply area.Probabilities are high, that the next bearish wave will initiate from there.2️⃣ EURUSD daily time frameAfter a breakout of a solid daily resistance, the market is preparing for its retest.Watch carefully the underlined zone and look for buying opportunities from there.3️⃣ EURAUD weekly time frameThe pair is currently approaching a weekly horizontal resistance cluster.Taking into consideration, that the pair is quite overbought, probabilities will be high to see a pullback from that4️⃣ GBPNZD daily time frameThe pair is currently retesting a broken neckline of an ascending triangle . As we discussed earlier, the trend line of a triangle and its neckline compose a contracting buy zone now.Chances will be high that the next bullish wave will initiate quite soon.For Additional confirmation use: Divergence Indicators
    • #CHFJPY: Classic Bearish Setup 🇨🇭🇯🇵   🔻CHFJPY has nicely respected a confluence zone based on a horizontal 4H resistance and a 0.5 retracement of the last bearish impulse.   The price formed a double top pattern on that and broke its neckline.   Probabilities will be high that the pair will drop lower soon. Goals: 141.172 / 140.363  
  • Create New...